Berkshire Hathaway (BRK.B) Stock: Greg Abel’s First Quarter Shows $397B Cash Stockpile

Key Highlights

• Q1 operating profit reached $11.35B, representing an ~18% yearly increase, though slightly below the $11.56B consensus forecast
• Cash reserves surged to an unprecedented $397.4B, climbing from $373B at 2025’s conclusion
• Net earnings jumped more than twofold to $10.1B compared to $4.6B in the year-ago quarter
• Insurance underwriting profits climbed 28% to $1.7B, despite Geico experiencing a 34% profit decline
• Greg Abel delivered his inaugural earnings report after assuming the CEO position from Warren Buffett in January 2026

In its first quarter of 2026, Berkshire Hathaway delivered operating profits of $11.35 billion, marking an increase of nearly 18% compared to the corresponding quarter of the previous year. The performance came in marginally beneath Wall Street’s projected $11.56 billion figure, according to FactSet consensus estimates.

The company’s net earnings reached approximately $10.1 billion during this three-month period — representing more than a 100% surge from the $4.6 billion posted in the first quarter of 2025.

Shares of BRK.B concluded Friday trading at approximately $487, hovering close to the $486.92 average price the conglomerate paid for its own stock during buyback operations in the quarter.

Berkshire Hathaway Inc., BRK-B

The standout figure attracting investor focus remains the company’s liquidity position. Berkshire’s holdings in cash, cash equivalents, and short-duration securities climbed to an all-time high of $397.4 billion at the end of March, advancing from $373 billion recorded at the conclusion of 2025.

This represents an enormous reserve of capital awaiting deployment.

Insurance Operations Fuel Performance

The insurance underwriting segment served as the primary catalyst behind the quarterly earnings improvement. This division produced $1.7 billion in profits, climbing 29% from the prior year, predominantly due to the absence of significant catastrophic loss events throughout the period.

Nevertheless, the insurance picture wasn’t uniformly positive. Geico, the company’s premier auto insurance operation, experienced a 34% earnings contraction. Investment income from the insurance segment also declined 7% to $2.7 billion, pressured by falling interest rates that reduced interest earnings.

BNSF, the conglomerate’s railway operation, delivered $1.4 billion in profits — representing a 13% year-over-year advancement driven by increased revenue and improved operational performance.

The manufacturing, service, and retail divisions contributed $3.2 billion to operating results, reflecting a 5% yearly improvement. Berkshire Hathaway Energy posted $1.1 billion in earnings, advancing 2%, supported by natural gas pipeline operations and federal renewable energy tax incentives.

New Leadership Era Begins

These results represented Greg Abel’s debut quarterly earnings release as chief executive. He assumed command at the beginning of 2026, taking over from Warren Buffett, and authored the company’s annual shareholder communication in February.

Abel appeared on stage Saturday during Berkshire’s annual shareholder gathering in Omaha — the legendary event commonly referred to as “Woodstock for Capitalists.”

Buffett, who turned 95, had evolved into something of an iconic presence at the gathering, attracting massive audiences and associating his reputation with consumer brands including Fruit of the Loom and Squishmallow.

Throughout the first quarter, Berkshire executed $234.2 million in share repurchases — marking its initial buyback transactions since May 2024. This included acquiring 33 Class A shares at an average cost of $729,701 and 431,462 Class B shares at approximately $486.92 per share.

The holding company also liquidated a net $8.1 billion worth of equity positions during the three-month period. Berkshire’s top five stock holdings — Apple, American Express, Bank of America, Coca-Cola, and Chevron — represented 61% of its aggregate equity portfolio as of March 31, declining from 65% at the close of 2025.

For comparison, Berkshire’s first quarter 2025 operating earnings totaled $9.6 billion, while the fourth quarter of 2025 witnessed a substantial 30% year-over-year contraction to $10.2 billion, making the Q1 2026 performance a significant turnaround primarily attributable to the insurance business recovery.

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